In order to discuss EV tax incentives, U.S. Senator Joe Manchin met with representatives from the car sector. Manchin, a Democrat from West Virginia, became more and more alarmed by China’s hegemony in the lithium-ion battery industry, and he advised automakers to shift substantial portions of the world’s battery supply chain out of China.
They would have to give up the lucrative tax credits provided by the Inflation Reduction Act, which helped American consumers finance their EVs, if they didn’t.
The new legislation significantly alters the requirements for automobiles to qualify while still giving customers access to $7,500 in federal tax relief. EV batteries must be produced in and made of resources mined and processed in the United States or in nations with free trade agreements like Canada, Mexico, Australia, and Chile in order to qualify for the full credit.
According to Manchin, he advised automakers, “You want to receive your $7,500, then grow this industry,” according to a Bloomberg article. They believed I would give in on it. I’ll give in, I’ll take everything from you, I replied, he continued.
